Julia Kurnia    May 10, 2012

Dear lenders,

I would like to offer an update on our efforts to recover the funds for Ms. Lenjir's loan, which were stolen upon disbursement in December 2010.

When the loan was first reported stolen, we worked closely with the Deputy Head of the Criminal Investigation Department of the Kenyan police to investigate the alleged theft. The suspect in the case fled his village and went into hiding, and we paid an award to an individual who assisted the local police to track down the suspect and arrest him.

At this point, the theft case passed into the jurisdiction of the Kenyan court system, over which our police contacts have no direct influence. The suspect was released on bail following an initial trial. Since his release, several trials have been scheduled, and we arranged for the clients whose loans were stolen to travel to the court location to testify in the trials. Despite ample evidence of the theft from the M-PESA mobile phone payment transfer records, each time our clients arrived to testify, the trial ended inconclusively and was rescheduled. Our clients allege that the suspect is bribing the local court in order to avoid a conviction.

I have been speaking frequently with our contact in the Kenyan police Criminal Investigation Department regarding this case, but he is not able to influence the local court. We will continue to pursue the case to the best of our ability, and will inform lenders of any further progress.

Please do not hesitate to contact me at any time with questions or concerns.

Sincerely,

Julia Kurnia
Director, Zidisha Inc.
[email protected]

Julia Kurnia    Nov 3, 2011

Dear lenders,

Following the suspect's release on bail in September, we worked with the deputy head of the Kenyan police and the local police in Narok town to arrange for the affected borrowers to serve as witnesses at the trial which was scheduled to take place today, November 3, in Narok. We confirmed with the police in Narok on November 2 that the trial would indeed take place today, and two borrowers undertook the day-long journey to Narok to attend. When they arrived, they were told that the court had too heavy a caseload and would not be able to hold the trial today after all. The trial was rescheduled for January 25, 2012. The borrowers allege that the local law enforcement bureaucracy is being bribed to ensure the suspect is never effectively brought to trial.

We are lobbying the Kenyan police headquarters in Nairobi to use their authority to ensure more effective pursuit of this case at the local level, and will continue to keep you informed of new developments.

Please do not hesitate to contact me at any time with inquiries or comments.

Regards,

Julia Kurnia
Director, Zidisha Inc.

Julia Kurnia    Oct 3, 2011

Dear lenders,

I spoke today with the local Criminal Investigation Department officer in Narok town. He informs me that the suspect has been released on bail, and that the next hearing is scheduled for November 3. We intend to work with the borrowers involved to ensure that they will be present to testify at the trial.

The suspect has not responded to our offer of a settlement out of court in return for the full amount of loan funds that were stolen.

We are in constant communication with Kenya's Criminal Investigation Department regarding progress in the case, and will keep you informed of new developments.

You may contact me at any time with comments or inquiries.

Best regards,

Julia Kurnia
Director

Julia Kurnia    Jul 28, 2011

Dear lenders,

We received an update from the Criminal Investigation Department office in Narok that the initial hearings were held this month, and that the trial is scheduled to resume on August 29. The suspect is still in custody, and has been well informed of Zidisha's offer to settle outside of court in exchange for return of the full amount of loan funds that were stolen. He has not yet given a definitive response to this offer. We are continuing to contact the Criminal Investigation Department regularly for updates, and will let you know when there are further developments.

In the meantime, please do not hesitate to contact me with any comments or inquiries.

Best,

Julia Kurnia
Director

[email protected]

Julia Kurnia    May 27, 2011

Dear lenders,

The suspect is still in custody, and his trial is scheduled to begin on July 7. The Criminal Investigation Department tells us that the Kenyan legal system does not provide for the seizure and restitution of stolen assets, even if the accused party is found guilty of their theft. We have been discussing with the suspect and his family a possible settlement out of court if the stolen funds are returned to Zidisha, and are currently awaiting their response.

We will continue to keep the affected lenders informed as the situation progresses. As always, please feel free to contact me at [email protected] with any questions or comments.

Best,

Julia Kurnia
Director

Julia Kurnia    May 9, 2011

Dear lenders,

Since the theft of loan funds was reported in January, we have been communicating details of actions taken by Zidisha, our partners in Kenya and the Kenyan police to the affected lenders by email due to the sensitive nature of the investigation.

Today, we received word from the Kenyan police's Criminal Investigation Department (CID) that they have finally arrested the suspect in a distant settlement of the Masai Mara, where he had been in hiding. The local CID officer who had been in charge of the investigation tells us that a preliminary hearing will take place tomorrow, and that the transaction records provided by M-PESA have yielded substantial evidence which will be used in the trial. The deputy head of the CID in Nairobi who has been overseeing the investigation confirmed that the suspect was arrested, but is not yet able to tell us whether it will be possible to recover the stolen funds.

This is all the news we have for the moment. We will communicate additional updates to the affected lenders as they become available.

Best regards,

Julia Kurnia
Director

Julia Kurnia    Feb 1, 2011

Dear lenders,

Ms. Lenjir has reported that she did not receive the loan funds that were disbursed on October 13, because an intruder accessed her borrower account and changed her M-PESA account number (the mobile banking account number that is used to receive payment transfers) just before Zidisha disbursed her loan. If this is the case, the intruder would have had to collaborate with an M-PESA agent, as M-PESA requires proof of identification to ensure that accounts are opened under the owners' real names, and Zidisha checks that account numbers match borrowers' names before disbursing loan funds. We did receive two repayment installments for this loan, but it is possible that the intruder made the repayments in order to avoid suspicion.

The alleged theft is being investigated in Kenya. We would prefer to avoid posting detailed information about the investigation underway in a public forum in order to avoid alerting the alleged thief and maximize our chances of recovering the missing funds, but we will report the results of the investigation to all lenders who funded this loan. In the meantime, should you have any questions, please feel free to contact me at [email protected].

Thank you and regards,

Julia Kurnia
Director
www.zidisha.org

Lauren Rosenbaum    Dec 24, 2010

www.overstream.net/view.php...

This is the foodstuff soko in the morning. As you can see in previous videos, it gets much crazier by the afternoon!

Lauren Rosenbaum    Dec 24, 2010

www.overstream.net/view.php...

The livestock "soko" occurs on the same day as the foodstuff one. Often people will buy or sell cows, sheep, and goats in the morning and make their household purchases in the afternoon. The video was taken early in the morning, before the livestock market got really busy.

Lauren Rosenbaum    Dec 24, 2010

www.overstream.net/view.php...

More of the open-air market, or "soko"

Lauren Rosenbaum    Dec 24, 2010

www.overstream.net/view.php...

Senkei at work at the weekly open-air market in Oloolamutia.

Naitayuang    Nov 23, 2010

Posted by jkuyioni.
Hi lenders of Ms Lenjir. I am hereby appologise for late repay due to understanding from the lady. The repayment will reach you by the end of this week. I was out as i was assisting them to make the repayment through the M-pesa. Please be patient for this misconflict.

Naitayuang    Sep 27, 2010

Hi lenders,
I would like to appreciate the most assistance that you have contributed to my account.I will move to Narok town to purchase more goods at the end of the month.Since know i have already made an half year general profit and loss account,that have generated total Ksh 50,000.The profit will be used to purchase the Masai shukas and pay the balance of school fees of Ksh 5,000.I would like to say once more thank you again.

Lauren Rosenbaum    Sep 14, 2010

Naitayung (nicknamed Senkei) exemplifies the emerging entrepreneurial spirit that is spreading among African women today. Senkei has a remarkable instinct for business and has followed that instinct to defy the traditional role of a Masai woman. Since convincing her husband to let her open a small shop in Sekenani, her hometown located about 7 Km away from Oloolamutia, Senkei has managed to grow and diversify her business and provide for her family financially.

I first met Senkei at an open-air market that is held every Tuesday in Oloolamutia. This is the day when people in the area buy their weekly foodstuffs, household goods, and craft materials and splurge on new clothing and shoes. It is by far the busiest day for shopkeepers in the town. The trick is that different areas host open-air markets on different days of the week. Senkei realized that by shuttling her goods to different shopping centers on their busiest days she could maximize her profits.

Market days are always bustling with activity. It is difficult to move with all of the people milling about. Each merchant’s wares are displayed inches from the next, but Senkei’s variety and charm make her a tough competitor. She was constantly flitting from one customer to the next-just watching her continuous energy and concentration made me a bit dizzy.

A few days later I made a trip to Senkei’s shop in Sekenani. The shop is housed in a permanent brick structure, just next to a small butchery and restaurant that Senkei opened to supplement her other sources of income. As we chatted I was impressed at how accurately she could relate the weekly and monthly expenses involved with all of her business activities, as well as the typical profits they generate.

Senkei’s success has earned her respect among community members. About a year ago she served as the chairlady for a women’s group that took a loan from Kenya Women Finance Trust, one of the country’s main microfinance operations. Senkei set an example for fellow members by completing her repayment months ahead of schedule. Of course, she isn’t all work all the time. She enjoys cracking jokes and loves to entertain guests. Before I left Sekenani she insisted that she had a “surprise” for me. She promptly revealed a shuka with Obama’s face and a map of Africa on it, which is now hanging in my dorm room at school.

Lauren Rosenbaum    Sep 7, 2010

Hello, lenders.

My name is Lauren Rosenbaum and I am one of Zidisha’s communications interns. I recently returned from working in the field as Zidisha’s Client Relations Manager in Kenya for two and a half months. was first stationed in Oloolamutia, a small town near the Masai Mara game reserve. Zidisha has four currently funded borrowers in Oloolamutia and surrounding villages as well as three individuals in the fundraising process. Because this is a remote region, opportunities for microcredit are scarce and many people are excited that Zidisha offers a new credit option.

I have worked in Kenya once before, as a communications intern for the International Crops Research Institute for the Semi-Arid Tropics in Nairobi. Through this work I met food processors and grain traders in the city as well as farmers, grain traders, and small-scale entrepreneurs in the rural areas of Western Kenya. What has always struck me about this country is the keen instinct for business that exists among residents of both rural and urban areas. Kenyans are very good at identifying demands for certain products and services within their communities. In Oloolamutia, the local economy once depended mostly on money generated from tourists through the sale of locally made crafts in maniatas (Masai cultural villages). While the Masai continue to sell their goods to tourists, most of their income is now made through the sale of goods and services to other residents of the region. Entrepreneurs engage in a wide variety of activities, from shuttling residents to different areas or the region to selling livestock drugs to pastoral Masai, for whom the care of cows, goats, and other animals is their main livelihood.

The Masai in this region seem quite open to business opportunities such as Zidisha that rely on technology. There are three pubs in town that have satellite dishes for televisions, and the owners of these pubs charge visitors to watch football games. As in many other parts of the country, most people own cell phones. M-pesa mobile money is also a very important part of people’s lives here, as it allows individuals to deposit and withdraw money through their phones rather than traveling long distances to reach a bank.

Business relationships in Oloolamutia and other places in the country are built on mutual respect and friendship and depend just as much on this dynamic as they do on price. It is for this reason that I believe Zidisha to be a good model for the area. Zidisha allows borrowers to have one-on-one interactions with lenders, without relying on intermediaries. I encourage lenders to take advantage of this unique system and comment on your borrowers’ profiles regularly.